8065-04 Unit 306: Resource management in food

preparation

Resource
Management
In Food Preparation
Introduction

The resources available to a manager in the

hospitality industry are finite. The business
has to make a profit and therefore
managers have to make allowances and try
to balance the resources available to them.
Resources include the human resources
relating all of the staff, the physical
resources such as the equipment and also
the commodities and products used for
production and the final products sold to the
customers.
The knowledge required to achieve the best
product offerings whilst working within the
given parameters separate a good manager
from an average or dismal one.
Resources in the Food Production Areas

Physical resources found in the kitchen, larder or pantry, stores and auxiliary areas
 These include all of the food items used in the production of the menu items and stored in dry or wet
storage
o Protein items – meat, seafood, pulses – stored in coolrooms and dry stores
o Carbohydrates – pasta, rice, potatoes – stored in the dry store
o Vegetables and fruit – all root and green vegetables and all types of fruit used on the menu –
stored in separate coolroom or segregated area in the fridge
o Dairy items – milk, cream, butter, yoghurt, cheese – stored in the fridge
o Dry goods – including all of the above groups in dried or canned format – stored in a dry and
clean room
 Chemicals and cleaning agents include
o Detergents – connected to a dishwasher, dispenser on sink
o Sanitisers and degreasers, bleach etc. stored in lockable cabinet
 Equipment both small and large
o Major equipment such as stoves, ovens, grills, deep-fryer, sheeter, coolrooms, freezers, shelves
o Small equipment such as blenders, mincers, food processors, ice cream machines – clean and
store in appropriate areas
o Tools such as knives, slotted spoons, spiders, wooden spoons – store in appropriate area
Budget Implications

Purpose of Budgets
 Budgets are set to estimate the revenue and expenses forecast for the year, month or week
o Agreed budgets and their achievement mean that the business will perform within the set
parameters
o Whilst budgets are an estimate they are normally based on historical data or a defined data
set of projected customer visits and average revenue
o Budgets are broken into overall budgets for the business as a whole but also broken into
smaller sub-components usually based on the cost centre e.g. kitchen, F&B and rooms
division
o The cost centre can then be broken into smaller parts for the kitchen this would mean
breakfast, lunch, room service and dinner or banqueting
o The targets are set and measured each week or month against the actual revenue and
expenses
o This allows for adjustments on an ongoing basis and also highlights any areas
underperforming
Financial Records

Examples of financial records

 Financial records are used to monitor the business performance and provide data to
management upon which decisions are made
o Agreed budgets and their achievement mean that the business will perform within the set
parameters
o Whilst budgets are an estimate they are normally based on historical data or a defined data
set of projected customer visits and average revenue
o Budgets are broken into overall budgets for the business as a whole but also broken into
smaller sub-components usually based on the cost centre e.g. kitchen, F&B and rooms
division
o The cost centre can then be broken into smaller parts for the kitchen this would mean
breakfast, lunch, room service and dinner or banqueting
o The targets are set and measured each week or month against the actual revenue and
expenses
o This allows for adjustments on an ongoing basis and also highlights any areas
underperforming
Financial Records

Examples of financial records

 The Profit and Loss statement is a summary of the financial performance of the business for a
selected period. It uses information from the Trial Balance to show the Sales Revenue, Gross
Profit, Cost of Goods Sold, Operating Expenses and Net Profit. Information from Journal entries
is compiled into each ledger code. This is then fed into Trial Balance before producing the Profit
and Loss Statement. The Profit and Loss Statement is the basis of many business decisions and
it is extremely important that all types of managers understand and know how to read them
 A transaction report is a listing of all transactions which have occurred within an account ledger
code, or group of codes. They are often used when investigating budget overspends or when
checking for accuracy. The Financial Controller will often print a transaction report after
completing the end-of-month accounts and prior to preparing Financial Statements, to ensure
that they have an understanding of each ledger code and the movements which have occurred
compared to budget
 A purchase summary report is a summary of all purchases within the period. This provides
useful information for management as it is a quick reference point as to the suppliers used and
the amount spent with each. It is a useful tool for bargaining with suppliers for cheaper prices or
higher quality products. Imagine if the vegetable supplier is supplying goods which are below the
acceptable level. The Chef can use the level of sales as a tool to persuade the supplier to provide
better produce. A supplier would not wish to lose the customer and will usually try to assist in any
way they can
Financial Records

Examples of financial records

 A source document is a record of the occurrence of any business transaction. Business
transactions include food sales in the restaurant, room hire for a conference, purchase of
amenities for the rooms and payment of wages. Examples of source documents include:
o Purchase orders
o Invoices
o Credit notes
o Restaurant dockets
o Guest room accounts
 Sales reports are produced by each revenue-producing department within a hospitality business.
The different revenue categories, including food, beverage, rooms, gaming, massage and golf
will be listed, showing the actual revenue for the period as well as the budget and the variance
between the two. Sales reports are used for managers to analyse the performance of each
department compared to budget and to find any weak spots. This way, any underperforming
areas can be corrected before the situation becomes too negative
 Stock reports show the closing stock level at the end of the period. Each department will have its
own stock report, whether they are kitchen, cellar, or housekeeping. Analyses can be done on
which items are popular, with a high turnover, and which are less popular and slower moving.
Stock on hand can be a significant drain on cashflow as it must be paid for upfront, sometimes a
long time before any income is produced from it
Suppliers

Types of Suppliers
 Suppliers are an essential component of the business. Having guaranteed quality of supply at a
competitive cost allows the chef to achieve their budget targets. Different types of suppliers are
used:
o Contract suppliers
 These have to tender for a contract to deliver supplies for a given time period and with
clear obligations in regards to the quality, price and quantity. A typical example would be a
supplier of dry goods and frozen goods
o Specialist suppliers
 These are selected due to their specialised offerings such as fresh truffles, pate, special
oils or rare to get items
o Local suppliers
 These are suppliers that conduct business in the local area and can be either small
producers offering local produce e.g. fish shop, or shops that are used to purchase short
term shortfalls such as butter or vegetables due to extra customers
o Ad hoc suppliers
 These are suppliers that are used to fill in specific needs
 Supplies purchased due to a special offer that they can provide to the business on a one
off basis
Suppliers

Considerations when choosing suppliers

Suppliers choices are based on many factors. It is important to look at the supplier provision in a
wider scope and to not just focus on one aspect such as price. Consider the time and effort required if
you just chase the cheapest price, ringing lot of suppliers, the cheaper product may be of inferior
quality and you are wasting time instead of producing the menu dishes. Key considerations are:
o Quality of produce
 Reliable quality of produce with a good flavour and sufficient shelf life
 Appropriate product for desired menu usage e.g. choice quality tomato for salad versus
second grade for sauce
 Seasonal product at its prime and competitive price
o Cost effectiveness and service
 Good value pricing in relation to quality provided
 Excellent customer service provisions and advice e.g. vegetables in season, specials
 Deliveries are on time and according to required standards e.g. HACCP compliant
o Ethical considerations
 Suppliers offer products that are “green” e.g. sustainable fisheries, organic produce,
locally grown produce incurring lower food miles and fair-trade products e.g. coffee
 Supplier is an established company with ethical behaviour and a good track record
Environmental Impacts

Social responsibilities are becoming an increasing factor for all businesses. Green practices are used
increasingly as customers pose questions how the enterprise responds to its obligations. Recycling
and reduced carbon foot print also make commercial sense.
The following environmental considerations apply:
o Recycling and waste management
 Collect recyclables within the business such as paper, cardboard, glass, plastic
 Collect food scraps and compost or use worm farms
 Food scraps can also be provided to local farmers e.g. pig food
 Collect oil and deep-fry compounds and recycle
o Chemicals and other liquids
 Use non-toxic cleaning agents and chemicals
 Dispose of chemicals properly
 Protect waterways through correct disposal of effluent and chemicals
o Sustainability
 Minimise food miles and work collaboratively with local growers
 Grow some of your own produce e.g. herbs
 Do not use any food items that are in danger or over harvested
Physical Resource Management

The physical resources are a big investment by the enterprise and must be managed properly to obtain
maximum benefit.
 The following considerations apply:
o Equipment
 All equipment should be listed on a register and clearly marked, preferably with a bar code and
engraving. This allows for quick referencing and stock take
 For large equipment a service register should also be held to ensure appropriate maintenance
and avoid breakdowns
 Small equipment and tools should also be noted in a register and clearly marked to prevent
pilferage. Small items such as dariole moulds can be stolen by staff and these measures can
assist to minimise incidents
o Food and beverages
 Establish clear stock control measures and a paper trail from order through to the actual menu
items or drinks sold. This will highlight any excessive waste or theft
 Manage the correct storage of resources to obtain maximum shelf life using wet and dry
storage
 Incorporate HACCP procedures into the resource management process
o Chemicals
 Store in a separate area or lockable cabinet with Material Safety Data Sheet (MSDS) attached
Storage Principles

In a Central Store there will be dedicated storage areas for particular types of stock items. This is
necessary because some stock items, especially perishables, require a specific range of storage
temperatures and conditions, to minimise spoilage and eliminate the possibility of cross-contamination.
Food items stored in refrigeration should be covered to prevent the items from drying out. They should
also be stored in a systematic way to minimise contamination. Optimally, each of the main food groups
and beverages would be stored in separate locations. As this is often not possible, storage of different
items together in one coolroom should be achieved as follows:
Desserts and similar items on the top shelf
Vegetables and fruit on the next shelf
Cooked items next
Raw product on the bottom shelf
Correct storage of all stock must address three main areas:
Sanitation
Storage area temperature
Storage area ventilation

General hygiene principles apply to all storage areas and cleaning schedules must include storage
shelves and storage areas. Even though different enterprises employ different storage systems, the aim
of each system is to avoid contamination and spoilage at all costs.
Storage of Food Items

Dry stores
 Dry storage areas are used for non-perishable or long-life food items. An effective dry store should
be well ventilated and not subject to direct sunlight, however in industry this is often not the case
 Dried and non-perishable foods are subject to deterioration from moisture and the infestation of
vermin and insects. This should be avoided as much as possible. In places such as in the tropics,
dry stores will ideally be air-conditioned to maintain an acceptable temperature and humidity level
 In general, the rate of deterioration doubles for each 10°C rise in temperature. This means the
quality loss at 28°C would be approximately double the quality loss for the same product stored at
18°C for the same time period
 The ideal holding storage temperature for dry goods is 14-20°C, with low humidity
 Some areas may be locked or have restricted access due to the expense of the items stored e.g.
liquor and wines
Note: All stock items should be stored on shelving so that air can freely circulate around them. Never
store food directly on the floor
Storage of Food Items

Wet stores is a term used to describe the storage in which product is chilled or frozen with higher
humidity levels
It is commonly believed that frozen goods do not spoil or deteriorate over time, however this is not the
case. Quality of frozen goods depends on the time items take to freeze and the temperature of the
freezer. Ideally, frozen food items such as meat and fish should be stored separately
If an item needs to be frozen before storage then a frozen food storage unit (freezer) is not suitable.
There is specific commercial equipment designed to freeze items before storage, such as blast freezers
that rapidly reduce the core temperature of the item. Cryogenic freezers will also drop temperatures
rapidly, by preventing the build up of ice crystals, which have an effect on eating quality
Ensure that any items that you want to freeze are wrapped in plastic and packed flat. This will speed
up the process and prevent freezer burn. If you place a gastronorm container of chicken breasts in the
freezer it may take considerable time for the centre parts to freeze
The ideal storage temperatures for frozen items depend on the moisture content of the actual item.
Guidance should be gained from suppliers as to the ideal storage temperature of specific items. As a
general rule, the holding storage temperature for frozen items should be below -18°C
All frozen items should be thawed out in the coolroom or fridge. Poultry should be thawed with the
breast pointing downwards to retain moisture. Meat items should be thawed with the fat towards the top
to prevent discolouration
Storage of Food Items

Refrigerated Storage for Meat, Poultry and Game

 Meat items should be stored in a way which prevents cross-contamination. This can occur through
the spillage of juices and/or blood. Raw meat and cooked meat must never be stored together
 Cryovac is a method of vacuum packing that will prolong the storage life of meat as it prevents
oxidisation. It also aids in the natural tenderising of meat
 Carcasses may be stored by hanging them in the coolroom but you must ensure that there is good
airflow and that they do not touch each other. This ageing process helps to tenderise the meat. The
downside is that the dried outer surface needs to be cut off, which leads to higher waste
 The ideal holding storage temperature for meat items is 2-4°C
Refrigerated Storage for Seafood
 Seafood must be stored so that cross-contamination through poor handling and bacterial growth is
prevented. This can be achieved by storing fresh seafood packed in ice on perforated drip trays.
The ice needs to be changed daily and should not be in direct contact with the seafood. If in doubt
check with your suppliers
 Cryovac is also appropriate for storing fish and is often used in the storage of fish for an à la carte
menu or for sous vide cookery
 The ideal holding storage temperature for fish is 1-2°C
Storage of Food Items

Refrigerated Storage for Fruit & Vegetables

 Because many fruit and vegetables are high in water content they will not tolerate low storage
temperatures
 Store fruit separate from vegetables and regularly check containers for pests
 The ideal holding storage temperature for fruit and vegetables is 6-8°C. Some vegetables, such as
potatoes or pumpkin, can be stored in the dry store for short time periods
Refrigerated Storage for Dairy Products
 Dairy products must be stored separately from other items, especially those with strong odours such
as strong smelling cheeses. This is because dairy products can absorb the odours of other food
items
 The ideal holding storage temperature for dairy produce is 2-4°C. Cheeses should be brought to
room temperature prior to selling, as this will allow the development of richer flavours and taste.
This is often done in restaurants by using a cheese trolley for display
Storage of Chemicals

Storage Area for Chemicals

 Many types of chemicals are used within the hospitality industry, including cleaners, sanitisers,
detergents, bleach, chlorine, caustic chemicals such as caustic soda (the active chemical in Drano),
pool chemicals and even cat litter to absorb liquid spills
 Every chemical has a Material Safety Data Sheet (MSDS) associated with it, which is included in
the delivery of the item. The MSDS contains all the data necessary to ensure safe handling and
storage. It is important that guidance be gained from the enterprise OH&S officer, as legislation
prevents some chemicals being stored together with others due to the fact they may react and
cause explosions
 Storage policies and practices for chemicals are subject to audit in the OH&S audits and
inspections. Storage areas for chemicals should be well ventilated and are not normally located
close to other storage areas. Quite often chemicals are stored in a lockable cabinet. Chemicals
should always be stored in a clearly labelled vessel with all necessary warning labels. The ideal
holding storage temperature for chemicals is 14-20°C, but one should also be guided by the
chemicals’ MSDS
Note: Never store chemicals in containers not intended for their storage, to prevent unfortunate mix-ups
which could cause injury or death!
Storage of Linen and Paper

Storage Area for Linen

 In the Central Store, there should be a dedicated store for linen. Although some paper products can
be stored together with the linen, no other stock items should be included in the same store. The
risk of contamination and spoilage from cleaning agents etc. is far too great
 Linen should not be stored where it may receive direct sunlight. The ideal holding storage
temperature for linen is 20-22°C
Storage Area for Paper products
 There is a wide variety of paper products used within hospitality enterprises, including paper
serviettes, toilet paper, tissues, doyleys and tray liners
 Paper products should not be stored with any other stock item that is likely to contaminate, stain, or
spoil them
 Paper products should not be stored where they may receive direct sunlight. Stored paper products
also provide an ideal habitat for insects and vermin to nest and breed. Consequently, this storage
area should be kept clean of anything that is likely to attract pests
 The ideal holding storage temperature for paper products is 20-22°C
Storage of Equipment

Equipment is a major capital expense for the business and unfortunately pilferage and theft as well as
breakages, or simply accidental discarding of used cutlery when clearing plates, can contribute
considerably to business expenses.
Large Equipment
 Lock in place and ensure that it is marked and has bar code or similar for ease of reference and
stock take
 Maintenance records can be linked to these records to ensure regular schedules
Small Equipment
 Limit access and lock expensive or rare items e.g. truffle planer and ensure that items are marked
and have a bar code or similar for ease of reference and stock take
 Registers can be used to monitor loss of small equipment
Crockery and Cutlery
 Regular stock take and monitoring of breakages to prevent theft and pilferage
 Monitor customers as well as staff re pilferage
Use of Resources

Equipment is like stock and whilst you need to have sufficient equipment to serve the number of seats
available in the restaurant it is easy to over cater and tie up money in unnecessary equipment, cutlery
and tools that may sit in the store room.
Associated costs of equipment such as maintenance, repairs and replacement also must be considered.
Consider the total amount needed , expected level of theft and breakages and allow for ongoing
replacement as part of the budget. Contemplate the number of covers that you are likely to do each
night, think about the time between resets and what cutlery and crockery will be cleaned in between. For
example if you have ea 50 seater restaurant you may need 50 entrée plates as not all people will have
starters but you can also utilise them for dessert but must allow for washing up in between.
Food also needs to be calculated carefully as you need sufficient to cover the daily needs but you want
to ensure no food is wasted. Taking stock after each service period allows for extra orders from
suppliers. Good communication between kitchen and service staff is essential. Relationships with
suppliers are also important to ensure they can supply when needed.
Chemicals are easier to store and calculate as they do not have a short lifespan. Once again a regular
stock take is advised as you do not want to run out of detergents in the middle of service.
Note: Applying minimum and maximum stock levels is an excellent way to protect cashflow and ensure
sufficient supplies.
Records of Resources

Keeping records of all resources is an essential management tool. Many operations use streamlined
computer systems to manage all incoming supplies, storage and dispersal amongst the various cost
centres. Touch screen computers, scanners and software that automatically reconciles existing stock,
sales and ordering needs can make the job of the manager considerably easier.
The receiving area should have adequate space and lighting to check and test the goods being received
and provide equipment to assist in the testing and checking, such as scales and scanning equipment.
The area should contain mobile transport equipment such as trolleys to aid movement of goods to the
storage areas, or direct to the cost centres.
The area should also contain an office area with the required recording tools associated with receipt of
goods and record maintenance. In order for the receiving process to be effective, documentation must
be available that allows control over the process. Types of documentation associated with the receiving
process include:

Documentation Financial Controls

Purchase orders Goods received Journal

Purchase specifications Financial Statements
Invoices Stock take
Dockets Collation of all data
Credit notes Reconciled against revenue
Record Requirements

Record keeping extends to the whole catering cycle and particularly in regards to HACCP. From the
data log supplied at delivery to storage temperature logs of dry and wet storage.
Records include:
Cleanliness – Records of cleaning schedules
Pest control – Records of pest control treatments
Temperature – Records of all dry and wet storage
Requisition – Records of all stock movements from dock through to cost centres
Stock transfer – Records all stock movement between cost centres
Stock records – Records of all stock stored, par stock levels, order descriptions
Inventory records – Perpetual stock system and financial reconciliation
Cost of Goods sold – Records all purchases and existing stock against revenue
Audits – Records from an external person or company to verify correctness of records
Key register – Records owners of specific keys and access priviliges